Advantages of Affiliate Marketing

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There are two sides to which affiliate marketing is beneficiary: Merchants, who employ affiliate marketing as their marketing strategy, and content providers - affiliates, who actually present on their websites merchants' products and services (Hoffman & Novak, 2000). Benefits, that affiliate marketing offers to the merchants, were already discussed in the introduction chapter, thus we will now only focus on content providers' perspective.

Affiliate marketing gives content providers new opportunities for generating revenues from their websites and provides them with the opportunity to cooperate with large number of merchants, to which they would not have access otherwise (Duffy, 2004).

As Papatla and Bhatnagar proved, content providers benefit most from the participation in the affiliate program, if there is close connection between the website and products or services offered through the program. The connection does not only apply to product types, which should match website orientation, but also to brand perceptions, consumer loyalty etc. (Papatla & Bhatnagar, 2002).

Moreover, some content providers can participate in affiliate marketing programs, because they perceive it as a good service for their visitors such as providing sale coupons, updated information about new products etc. (Duffy, 2004).

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